(c) If the State board compares the "wealth per student" of local educational agencies in order to determine their relative ability to provide the resources referred to in paragraph (a) of this section, local wealth may be measured by reference to the equalized assessed value of taxable property in the area served by the agency, or the total taxable income of residents in the area served by the agency, or by any similar method which reasonably measures a local educational agency's ability to provide such resources. "Wealth per student" may then be determined by dividing the figure representing the wealth of the local educational agency by the total number of students that agency educates. (d) The State plan shall describe in detail the method by which the State board will give due consideration to the criterion set forth in paragraph (a) of this section in allocating funds among local educational agencies. This description shall include an explanation of: (1) How the State board determines the relative priority of local educational agencies in terms of their ability to provide the resources referred to in paragraph (a) of this section; (2) What information is to be relied upon in making this determination; and (3) What the sources of this information are and how often it is updated. (20 U.S.C. 1263 (a) (6)) $102.56 Relative costs of programs, services, and activities. ing special services (other than those necessary to meet the special vocational education needs of certain population groups, such as disadvantaged or handicapped persons or persons of limited English-speaking ability, to be considered pursuant to § 102.54), such as bus transportation for students, or unusual and excessive maintenance costs for outdated buildings and facilities, which are not usually part of the cost of education provided by other local educational agencies in the State. (a) In allocating funds among local educational agencies, the State board shall give due consideration to the cost of the programs, services, and activities these local educational agencies provide which is in excess of the cost which may be normally attributed to the cost of education in such local educational agencies. (b) In determining the relative priority of local educational agencies in terms of costs of education, the State board shall give primary consideration to: (1) Differences in the cost to local educational agencies of materials and services, such as construction or equipment costs or teachers' salaries, which are due to variations in price and wage levels or other economic conditions existing in the areas served by the local educational agencies; and (2) Differences in the amount of excess costs accruing to local educational agencies because of the need for supply (c) The State plan shall describe in detail the method by which the State board will give due consideration to the criterion set forth in paragraph (a) of this section in allocating funds among local educational agencies. This description shall include an explanation of: (1) How the State board determines the relative priority of local educational agencies in terms of costs of education; (2) What kind of information is to be relied upon in making this determination; and (3) What the sources of this information are and how often it is updated. (20 U.S.C. 1263 (a) (6)) § 102.57 Reasonable tax effort. (a) In apportioning funds among local educational agencies supported in whole or in part with local tax revenues, the State board shall assure that no local educational agency which is making a reasonable tax effort, as determined pursuant to paragraphs (b) and (c) of this section, will be denied funds for establishing new vocational education programs solely because it is unable to pay the non-Federal share of the cost of such programs. (b) For purposes of this section, the tax effort of a local educational agency shall be represented by the ratio between the total annual local tax revenues available to the local area or community served by the agency and the total wealth of such area or community (calculated on the basis of the equalized assessed value of real property, income, or similar measures, as appropriate). In computing local tax effort each State may use whatever means, including reference to an existing tax effort index, it considers fair and equitable to all local educational agencies in the State. (c) A local educational agency's tax effort may be considered reasonable whenever it is at least equal to the average local tax effort in the State. The average local tax effort in the State shall be represented by the ratio between total annual local tax revenues in the State and total aggregate wealth in the State. However, in States where local educational agencies have been divided into different legal clasifications with different taxing authorities, the State may choose to determine the reasonableness of a local educational agency's tax effort by comparing it with the average tax effort of local educational agencies of the same legal class rather than with the overall average local tax effort in the State. (d) The State plan shall describe in detail the manner in which the State board assures that paragraph (a) of this section will be complied with in allocating funds among local educational agencies. This description shall include a statement of (1) How local tax effort and how each of the factors used in computing local tax effort (e.g., local revenues and local wealth) are measured; (2) How often the data concerning local revenues and local wealth are updated, or, in the case of States which compile and rely upon a tax effort index, how often the index is updated; (3) The level of local tax effort which the State board shall consider reasonable and which meets the minimum requirement in the first sentence of paragraph (c) of this section; and (4) Whether the reasonableness of local tax effort is to be determined by comparing it with the average local tax effort in the State or with the average tax effort of local educational agencies in the same legal class. (20 U.S.C. 1263 (a) (6) (G)) § 102.58 Maintenance of effort. (a) The State plan shall provide assurance that Federal funds made available under part B of the Act will not supplant State or local funds, but will be so used as to supplement and, to the extent practical, increase the amount of State and local funds that would in the absence of such Federal funds be made available for all of the purposes set forth in section 122 (a) of the Act, and for each of the purposes set forth in section 122(a) (2), section 122(a) (4) (A), and section 122(a) (4) (B) of the Act, so that all persons in all communities of the State will as soon as possible have ready access to vocational educa tion suited to their needs, interests, and ability to benefit therefrom. (b) The State plan shall also provide that no payments of Federal funds under the Act will be made in any fiscal year to any local educational agency unless the State board finds that the combined fiscal effort of that agency and the State with respect to the provision of vocational education by that agency for the preceding fiscal year was not less than such combined fiscal effort for that purpose for the second preceding fiscal year. For the purpose of this paragraph, "combined fiscal effort" means total expenditures of State and local funds with respect to the provision of vocational education by the local educational agency. A combined fiscal effort in the preceding fiscal year shall not be deemed to be a reduction from that in a second preceding fiscal year unless the expenditure for vocational education and ancillary services and activities from State and local funds in the preceding fiscal year is less than that in the second preceding fiscal year by more than 5 percent. Any such reduction in combined fiscal effort for any fiscal year by more than 5 percent will disqualify a local educational agency unless the local educational agency is able to demonstrate to the satisfaction of the State board that such a reduction was occasioned by unusual circumstances that could not have been fully anticipated or reasonably compensated for by the local educational agency and that the fiscal effort of the local educational agency does not otherwise indicate a diminished fiscal effort. Such unusual circumstances may include in the first preceding fiscal year unforeseen decreases in revenues due to the removal of a large segment of property from the tax rolls or other causes, or transfers to, or combinations with, other local educational agencies of responsibility for the conduct of some or all vocational education activities or services; or, in the second preceding fiscal year, contributions of large sums of money from outside sources on a short-term basis, or unusually large amounts of funds expended for such long-term purposes as the construction and acquisition of school facilities or the acquisition of equipment. (20 U.S.C. 1263(a) (11)) § 102.59 Percentage requirements with allocations of Federal funds pursuant to § 102.52 shall comply with the following requirements with respect to the use of Federal funds: (1) Vocational education for disadvantaged persons. At least 15 percent of the total allotment for any fiscal year to a State of funds appropriated under section 102(a) of the Act, or 25 percent of that portion of the State's allotment which is in excess of its base allotment, whichever is greater, shall be used only for vocational education for disadvantaged persons. (2) Postsecondary vocational education. At least 15 percent of the total allotment for any fiscal year to a State of funds appropriated under section 102(a) of the Act, or 25 percent of that portion of the State's allotment which is in excess of its base allotment, whichever is greater, shall be used only for postsecondary vocational education. (3) Vocational education for handicapped persons. At least 10 percent of the total allotment for any fiscal year to a State of funds appropriated under section 102(a) of the Act shall be used only for vocational education for handicapped persons. (20 U.S.C. 1262 (c) (1)−(3) ) ments impose a hardship or are impractical in their application with respect to that State. Such a finding will be made only upon the request of the State submitted through its State board as a part of its annual program plan or amendment thereto. (b) Definition of base allotment. As used in this section, the term "base allotment" means the sum of the allotments to a State for fiscal year 1969 from sums appropriated under (1) section 102(a) of the Vocational Education Act of 1963 before its amendment by the Vocational Education Amendments of 1968 (20 US.C. 35-35n), (2) the Smith-Hughes Act (20 U.S.C. 11-15, 16-28), (3) the Vocational Education Act of 1946 (20 U.S.C. 151-15m, 150-15q, 15aa-15jj, 15aaa15ggg), and (4) the Act of March 3, 1931, relating to vocational education in Puerto Rico (20 U.S.C. 30), the Act of March 18, 1950, relating to vocational education in the Virgin Islands (20 U.S.C. 31-33), section 9 of the Act of August 1, 1956, relating to vocational education in Guam (20 U.S.C. 34), and section 2 of the Act of September 25, 1962, relating to Vocational education in American Samoa (48 U.S.C.1667). (20 U.S.C. 1262 (c) (4)) (20 U.S.C. 1262 (c) (1), (2)) (d) Vocational education meeting more than one percentage requirement. If an expenditure for vocational education falls within more than one of the categories for which there is a percentage requirement, the total amount of the expenditure may be counted as an expenditure for vocational education in one of the categories, or prorated to each of the categories in any manner which the State board deems reasonable and proper so long as the aggregate amount prorated to the categories in which the expenditure falls does not exceed the total amount of the expenditure. (c) Waiver of percentage requirements. The percentage requirements in subparagraphs (1) and (2) of paragraph (a) of this section may be waived for any State by the Commissioner for any fiscal year upon his finding that the require (20 U.S.C. 1262 (c)) § 102.60 Content of local applications. (a) Applications from local educational agencies shall include the following: (1) A description of the proposed programs, services, and activities (including evaluation activities) for which funds under the State plan are being requested; (2) A justification of the amount of Federal and State funds requested, and information on the amounts and sources of other funds available for the programs, services and activities. The local educational agency must also provide an assurance that any Federal funds received under Title VII of the Elementary and Secondary Education Act of 1965 (Bilingual Education) will be so used that expenditures for program purposes will supplement each other and not amount to a duplication of effort. (3) Information indicating that the application has been developed in consultation with the educational training resources available in the area to be served by the applicant local educational agency; (4) Information indicating that the programs, services, and activities proposed in the application will make substantial progress toward preparing the persons to be served for a career; (5) A plan, extending 5 years from the date of the application, for meeting the vocational education needs of potential students in the area or community to be served by the local educational agency, which plan shall be related to the comprehensive area manpower plan, if any, in that area; and (6) Information indicating the means by which the programs, services, and activities proposed in the application will make substantial progress toward meeting the needs set forth in the application pursuant to subparagraph (5) of this paragraph. (b) The application shall also contain such other information as may be required by the State board in determining allocations of funds pursuant to §§ 102.51 and 102.52, and in determining whether the programs, services, and activities proposed therein will otherwise meet all other applicable requirements in the Act, the regulations in this part, and the State plan. (c) The State plan shall describe in detail the information which the State board will require local applications to contain in order to meet the requirements of paragraphs (a) and (b) of this section. (20 U.S.C. 1263 (a) (6) (F)) [40 FR 8076, Feb. 25, 1975, as amended at 40 FR 57763, Dec. 11, 1975] VOCATIONAL EDUCATION PROGRAMS FOR THE DISADVANTAGED § 102.64 State plan provisions—general. Funds appropriated under section 102 (b) of the Act and allotted to States for the purpose of section 122(a) (4) (A) of the Act may be used only for vocational education programs for disadvantaged persons. The State plan requirements set forth in §§ 102.31 through 102.46 are also applicable to vocational education programs for the disadvantaged assisted with funds under section 102(b) of the Act. In addition, §§ 102.65 through 102.67 require inclusion in the State plan of certain provisions specifically applicable to such programs for the disadvantaged. (20 U.S.C. 1242 (b), 1262(a) (4) (A)) § 102.65 Areas of allocation. The State plan shall provide that allotments made to the State from sums appropriated under section 102(b) of the Act will be allocated within the State to Vocational education programs for disadvantaged persons located in areas of the State with a high concentration of youth unemployment or school dropouts, as determined pursuant to § 102.46. (20 U.S.C. 1263 (a) (6) (C), (16)) § 102.66 Participation of students in private nonprofit schools. The State plan shall set forth the policies and procedures to be followed in vocational education programs or projects for disadvantaged persons approved and funded under section 102(b) of the Act which assure that, to the extent consistent with the number of students enrolled in nonprofit private schools in the area to be served whose educational needs are of the type which such a program or project is designed to meet, provision has been made for the participation of such students in accordance with the requirements of § 102.7. (20 U.S.C. 1263(a)(16)) § 102.67 Noncommingling of funds. The State plan shall set forth the policies and procedures to be followed in vocational education programs or projects for disadvantaged persons approved and funded under section 102(b) of the Act which assure that funds from Federal sources used to accommodate students in nonprofit private schools pursuant to § 102.66 will not be commingling with State or local funds so as to lose their identity as funds from Federal sources. In developing such policies and procedures, it shall not be necessary to require separate bank accounts for funds from Federal sources, so long as accounting methods will be establish which assure that expenditures of such funds can be separately identified from other expenditures. (20 U.S.C. 1263(a) (16)) (a) Funds available to the State board pursuant to section 131(b) of part C of the Act shall be used for the establishment and operation of the State research coordination unit; and for making grants to any college, university, local educational agency, or other public or nonprofit private agency or institution, and entering into contracts with any private agency, organization, or institution, for(1) Vocational education research and personnel training programs; (2) Developmental, experimental, or pilot programs developed by such institutions and agencies and designed to meet the special vocational needs of youths, particularly disadvantaged youths in economically depressed communities as determined pursuant to 102.45; and (3) The dissemination of information derived from the foregoing programs or from research and demonstrations in the field of vocational education, such as those reported in products of the Educational Resources Information Center (ERIC) and related agencies. (20 U.S.C. 1281 (b)) (b) The State plan requirements set forth in §§ 102.31 through 102.46 are also applicable to programs and activities assisted with Federal funds under section 131(b) of the Act. In addition §§ 102.71 through 102.73 require the inclusion in the State plan of certain provisions specifically applicable to such programs and activities. (20 U.S.C. 1263 (a) (4)–(6)) and contracts under part C of the Act. Such policies and procedures will assure that (1) Applications will describe the nature, duration, purpose, and plan of the project, the use to be made of the results in regular programs of vocational education, the qualifications of the personnel staff who will be responsible for the program or project, a justification of the amount of grant or contract funds requested, the portion of the cost to be borne by the applicant, and such other pertinent information as the State board may require; and (2) Applications will be executed and submitted to the State board by an individual authorized to act for the applicant. (b) Review of applications. The State plan shall describe the policies and procedures to be used by the State board in reviewing applications for grants and contracts which have been recommended $102.71 State research coordination by the State research coordination unit unit. (a) The State plan shall provide for the establishment or designation in the State of a State research coordination unit. The State plan shall indicate the name of the unit and shall describe its staff, organization, and functions with respect to vocational education research and personnel training programs, developmental, experimental, or pilot programs, and dissemination activities. (b) In describing the organization of the unit the State plan shall indicate the place of the unit in the organizational structure of the State government and the relationship of the unit with other State board units and other State agencies and institutions responsible for conducting programs of vocational educational research and dissemination. When the functions of the research coordination unit are carried out by an agency or institution other than the State board, the State plan shall provide for aoperatively developed written agreements between the State board and the agency or institution which is carrying out such functions. (20 U.S.C. 1281 (b), 1263(a) (4)–(6), (9) §102.72 Application procedures. (a) Submittal of applications. The State plan shall describe the policies and procedures to be followed in submitting applications to the State board for grants or the State advisory council. Such policies and procedures shall assure that the applications will be reviewed in terms of such pertinent factors as (1) Relevance to priority areas in vocational education specified in the longrange program plan and to vocational education programs, services, and activities described in the annual plan; (2) Adequacy and competence of personnel designated to carry out the program or project; (3) Adequacy of facilities; (4) Reasonableness of cost estimates; (5) Expected potential of the proposed program or project being made a part of the regular vocational education program; and (6) The expected potential for utilizing the results of the proposed program or project in exemplary or regular vocational education programs. (c) Action on applications. The State plan shall describe the policies and procedures to be followed by the State board in acting on applications. Such policies and procedures shall assure that the State board will— (1) Either (i) approve the application in whole or in part, (ii) disapprove the application, or (iii) defer action on the application for such reasons as lack of funds or a need for further evaluation; (2) Provide that any deferral or disapproval of any application will not pre |